boule diagnostics ab management presentation · management presentation. ernst westman, ceo boule...

1 11-11-04 Copyright © 2011 by Boule Diagnostics AB

Boule Diagnostics AB Management presentation

Ernst Westman, CEO Boule Diagnostics AB

•  CEO of Boule Diagnostics AB since 1994

•  Holds a masters degree in chemical engineering


Introduction

Boule in brief

•  Hematology – decentralized blood analysis, Complete Blood Count (CBC)

•  Supply of automated systems - instruments and consumables

•  Established sales channels in 104 countries

•  2010 Sales 229 MSEK (+31%); EBIT 20 MSEK (+405%)

•  96% of sales outside Sweden

•  Production in Sweden, USA and China

•  R&D in Sweden and USA


– A growing diagnostic company with global footprint

Introduction

Strong offering – positioned for growth

•  Long-term growth potential

•  Strong business model

•  Operational leverage


Introduction

Our area – blood analysis

•  Blood analysis (CBC) – the most common laboratory diagnostic test for physician visit, determines concentration of blood cells (red, white and platelets)

•  Blood analysis determine general health status and screens a variety of diseases

•  Each year, 1.2 billion blood tests are performed worldwide •  We focus on the decentralized segment of the market,

outside the big central laboratories, close to the patient


- The world’s most common laboratory diagnostic test

Introduction

Our offering

Instruments •  CBC instruments for

the Human and Veterinary Market

•  Tuned to reagent and controls

Consumables •  Reagents - bar code

lock for original reagent integrity

•  Controls & Calibrators - bar code entry of assay values to avoid user error

Service & Support •  Distributors trained and

certified to provide excellence in customer support

A Total Quality Concept for CBC


- A total quality concept for complete blood analysis

Introduction

Market size

•  Boules targeted market is worth approx. USD 0.4 billion (SEK 2.5 billion)

•  Boules market share is approx. 9%

Total market for IVD Value: USD 40 billion

Market for Hematology Diagnos=cs Value: USD 1,7 billion

Market for Decentralised Hematology Diagnos=cs Value: USD 0,4 billion

Hematology diagnostics

4%

Decentralised diagnostics

25%

Boule market share 9%


- Our available market is big – and can be widened

The Market

Consumables – locked to Boule instruments

•  In-house development and production of all essential components for Hematology CBC systems

•  Unique competence in consumables development based on individuals from former Hematology giant – Coulter Corporation

•  Boule is one of few suppliers in the world of high quality blood controls for Hematology


– A business model with increasing recurring revenues

Our offering

Additional Consumable Business

Reagents •  Sysmex •  Beckman Coulter •  Abbott Cell-Dyn •  ABX …and others

Controls and calibrators •  Sysmex •  Beckman Coulter •  Abbot Cell-Dyn •  ABX …and others

OEM consumables The CDS development team offer tailor made reagents, controls and calibrators to several leading manufacturers

- White label deliveries gives economies of scale

Our offering

CDS brand consumables, reagents and control material


Product Evolution

Future POC system (Boule)

Traditional hematology system (Comp X)

Present system platform (Boule)


- Easy to use systems gives new business opportunities

Our offering

POC-system

Total POC-market – 12 billion USD •  Excl. diabetes monitoring 4 billion USD

Fast growing – >10% annual growth

Distribution agreement with Alere •  Leading POC diagnostic corporation

•  Contract minimums established

Currently no available CLIA waived POC CBC system on the market •  CBC market potential estimated to

300 MUSD – Boule’s target 50%


– Our next generation, opens a new market

Our offering

Sales development 2001-2010


– Successful transformation to new system platform

Business modell

Rea

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0 S

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old

0,000"

2,000"

4,000"

6,000"

8,000"

10,000"

12,000"

14,000"

16,000"

18,000"

0"

200"

400"

600"

800"

1000"

1200"

1400"

1600"

1800"

2001" 2002" 2003" 2004" 2005" 2006" 2007" 2008" 2009" 2010"

Old system"New system"Old reagent"New reagent"

Global distribution and sales

Total sales, 2010 229 MSEK

Europe 56 distributors Sales 51 MSEK

Asia/Pacific 32 distributors Sales 40 MSEK

North America 32 distributors Sales 95 MSEK

Africa/Middle East 45 distributors Sales 18 MSEK

South America 22 distributors Sales 25 MSEK


– Low risk and low cost distributor strategy

Business modell

Key figures

Q2 Full year

(SEK million) 2011 2010 2010 2009

Net sales 57.6 59.4 229.4 175,5

Gross margin,% 44 46 45 42

Operating profit 1.4 7.9 20.3 5.0

Operating margin, % 2.4 13.3 8.8 2.8

Net profit 0.2 9.9 18.9 4.1

Earnings per share 0.0 2,9 5.4 1.2


Boule in numbers

Goals •  Volume growth – top line CAGR >10% next 5 years •  Profitable business – targeting EBITDA margin 15% •  Equity ratio of 30-50 %

Conclusion

•  Long term growth potential –  Strong position with presence in more than 100 countries –

continued focus on emerging markets –  Increased market share on mature markets –  Locked systems base for increased sales of consumables –  POC can multiply sales over time

•  Strong business model –  Recurring revenues from sales of consumables to large and

growing base of installed systems –  Locked systems minimize competition

•  Operational leverage –  High margins in consumables –  Economies of scale as volume increases –  Sales through distributors lowers cost for expansion and

minimizes risk


boule diagnostics ab management presentation · management presentation. ernst westman, ceo boule...

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